PropIRC
PropIRC is a self contained IRC (Internet Relay Chat) client that runs on a Propeller Chip. The entire hardware implementation fits on a single 2"x2" 2-layer PCB. It features a standard 1024x768 VGA output and 10base-T ethernet interface for internet connectivity.
PropIRC won third place in the 2008 Propeller Design Contest. The complete contest entry including all source code can be found at Parallax's Website. The project was also mentioned on Hack A Day